The influence of the strong dollar on investment strategies, according to Morningstar's Dan Kemp

Dan Kemp, Morningstar's Director of Research and Investments, sheds light on the current economic situation, marked by the strength of the dollar. 

Kemp stresses the inherent volatility of currencies, which can impact companies' earnings. The rise in the dollar is putting significant pressure on the Chinese economy and the yuan.

China's economic performance, although mixed, is exceeding expectations. Kemp sees renewed confidence among Chinese consumers and a government drive towards growth. Morningstar has capitalised on the falling valuations of China's leading technology companies, including them in its portfolios.

In comparison with India, where growth prospects look promising, Kemp remains cautious. He attributes the high valuations in the Indian market to enthusiasm that has already been priced in, limiting expected future returns. 

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